Salak geothermal power plant, Indonesia (source: BCPG)In an information disclosure made to the Indonesian Stock Exchange (IDX/BEI), the company announced that the project has now reached the mechanical completion stage and that its overall progress is at the 95.3% mark. All that remains to do now is to connection of the power plant to the transmission networks and its commissioning.
In 2021, Ormat was contracted to deliver and set up the power plant for this project. The power plant was originally slated to start commercial operations by 2022, but had been delayed despite guarantees that the project was on track.
BREN is now a publicly listed company following an initial public offering of 4,015,000,000 shares at a price of IDR 780 per share. The IPO was oversubscribed by 135 times, and BREN was successful in raising funds of around IDR 3.13 trillion (approx. USD 198 million).
According the published prospectus, the proceeds from the IPO will be used for debt repayment to the Bangkok Bank Pcl and to finance the purchase of geothermal power plants in Java. Hendra Soetjipto Tan, CEO of BREN, also stated that the IPO will allow BREN to expand not only in the geothermal industry, but also to other renewable technologies.
Moreover, the information disclosure said that the company is carrying out a retrofit project of the current Salak geothermal power plant with the goal of increasing its capacity by 7.2 MW. This will be done by replacing the power plant technologies and supporting equipment with more modern counterparts. This is planned be operational by the end of 2025.
BREN remains committed to continuing the exploration work on two prospects in Indonesia – namely Hamiding in North Maluku, and Sekincau in Lampung. Star Energy is currently conducting preliminary geothermal exploration surveys at these locations.
